MTN Confident of Growth Opportunities in East African Operations

South Africa's MTN Group, which has been operating in Rwanda and Uganda for the past eight years, says that it is positive about growth prospects in the two countries and is impressed by the enabling business environment which had secured the company more than 1.5 million combined subscribers as at 30 June 2006.

A non-executive director of the MTN Group operations in the Middle East, North and East Africa (MENEA), Mr Rhidwaan Gasant, says although mobile penetration has grown considerably since the launch of MTN in both countries (3% in Rwanda as at 31 December 2005) and 6% in Uganda as at 31 December 2005), there are still growth opportunities for MTN in the two countries.

Addressing investors at meetings hosted by the Presidents of Rwanda and Uganda at the annual African Business Leaders' Forum held in Johannesburg last week, Gasant said MTN had experienced an investor friendly environment in both countries. This resulted in MTN being able to contribute to infrastructure as well as social and economic development.

"Political stability, a stable exchange rate and a pragmatic and stable regulation of the industry through accessibility and dialogue are some of the building blocks that have secured our success," says Gasant.

Both MTN Rwanda and MTN Uganda, are the largest tax payers in those countries. MTN has invested US$180 million in Uganda to date and in 2005 alone MTN Rwanda invested US$13 million in capital expenditure.

Both operations have focused corporate social responsibility programmes including support for initiatives in health, education, environmental conservation and culture. In addition, MTN Uganda's villagePhone and MTN Rwanda's Tuvugane initiatives provide access to mobile telephony to rural communities and supports entrepreneurs in rural areas who rely on micro-financing assistance from locally-based lenders to purchase the payphones and sell airtime units to the local communities.

In a demonstration of its commitment to Uganda, MTN recently increased its shareholding in MTN Uganda from 51% to 97%, making the operation a fully consolidated subsidiary of the MTN Group.

Inviting other investors to Uganda, the Executive Director of the Uganda Investment Authority, Dr Margie Kigozi, cited MTN as one of the model investors in the country and said information communication technology, including mobile telephony, was one of Uganda's priority sectors.

Earlier this year, in recognition of MTN's contribution to the development of the communication sector, President Yoweri Museveni awarded MTN Uganda the 2006 Presidential Transformation Award at a special ceremony to recognise companies and individuals who have led the country through economic, social and cultural transformation.

In addition, MTN Uganda was awarded a Government tender to provide infrastructure for universal service in the eastern and western regions of the country. These initiatives will see internet access in some of the most rural areas of Uganda, hence bridging the digital divide.

Says Gasant: "Operating in conducive business environments has effectively contributed to the growth of our interests in Eastern Africa and our confidence is reflected in our investments and progress there."

Posted to the site on 23rd October 2006